Savings
2026 Solar Savings: Why Oklahoma Rates Make Solar Worth It
Oklahoma utility rates are climbing fast. $246M in approved increases from OG&E and PSO. See the real math on solar savings for Oklahoma homeowners.
The Numbers
What Just Happened to Oklahoma Electricity Rates
Oklahoma's two major utilities both received large rate increases within weeks of each other.
OG&E was approved for a $126.6 million rate increase in November 2024. That translates to roughly $13 more per month for the average residential customer. OG&E serves about 900,000 customers across the state.
PSO followed with a $119.5 million rate increase approved in January 2025. That adds about $12 per month for a typical residential customer using 1,100 kWh. PSO serves roughly 580,000 customers.
Combined, that is $246 million in approved rate increases. The largest in state history.
Rate cases can change between filing, settlement and final order. Review the current PSO case status before using a proposed amount in a household decision.
The Cause
Why Rates Keep Climbing
Several forces are pushing electricity costs higher in Oklahoma.
Large data-center loads can change generation and transmission planning. The Oklahoma data-center tracker maintains the current project inventory and source dates.
That demand can require new generation, transmission lines and substations. The household effect depends on the tariffs and cost-allocation rules the Oklahoma Corporation Commission approves.
Year-over-year, Oklahoma electricity rates increased about 12.4% from May 2024 to May 2025, based on EIA data (11.51 to 12.94 cents per kWh). The current average sits around 12 cents per kWh.
Oklahoma electricity is still about 36% below the national average of 18.05 cents per kWh. That gap is closing. And once infrastructure costs for data center expansion hit ratepayers, it could close faster.
The Math
15 Years of Utility Bills vs. Solar
This example shows how one starting bill changes under a stated rate-growth assumption. It is an illustration, not a forecast.
Assume a starting monthly bill of $180. That is common for a 2,000 square foot home in Oklahoma with electric heat and air.
Using 5% annual growth, here is the scenario. Actual future rates and usage will differ.
| Year | Monthly Bill | Annual Cost |
|---|---|---|
| Year 1 | $180 | $2,160 |
| Year 5 | $219 | $2,626 |
| Year 10 | $279 | $3,352 |
| Year 15 | $357 | $4,278 |
In this illustration, total utility cost over 15 years at 5% annual growth is approximately $46,800.
A solar panel installation can reduce the electricity you buy from the utility. A proposal should model production, degradation, export credits and remaining utility charges for the specific property.
Cash payback depends on project cost, recent usage, modeled production, utility rules and the rate assumptions used. Review the property-specific estimate and do not treat it as a guarantee.
Honest Take
What Solar Does Not Solve
Solar is not free electricity. It is prepaid electricity. You pay upfront for 25+ years of energy production. The question is whether that prepaid cost is less than what you would have paid the utility over the same period.
The answer depends on the property, usage, utility rules, equipment, project cost and financing terms.
The system cost needs to stand on its own. A good proposal should show the equipment price, expected production, financing terms, export assumptions and long-term utility-rate exposure without leaning on outdated discount assumptions.
If you finance the system, compare the cash price, interest rate, lender fees, term, total amount paid and monthly payment. A payment comparison alone does not establish savings.
Panels also do not eliminate your utility bill. You may still owe fixed charges and pay for electricity drawn from the grid. The remaining bill depends on usage, modeled production, export credits and current utility rules.
Bottom Line
Is 2026 the Right Time?
OG&E and PSO received a combined $246 million in approved rate increases in 2024 and 2025. Oklahoma's statewide residential annual average rose 29.6% from 2020 to 2025, based on EIA data.
Solar does not make sense for every home. Trees, roof angle, shade patterns and your electric usage all factor in. But for homeowners with good conditions, the math is getting harder to ignore.
Ask for a proposal that shows cash and financed totals, modeled production, utility rules and rate assumptions. Use those inputs to judge payback for the property.
Timing should follow the roof, electrical scope, usage and project economics rather than a prediction about the next rate case.
Track where rates are heading on our Oklahoma utility rate tracker.